USD/JPY Price Analysis: Stuck in an expanding descending channel

USD/JPY's 15-minute chart shows a bearish channel.
A breakout would open the doors for a re-test of Wednesday's high.

Omkar Godbole FXStreet Contributor

USD/JPY is trapped in an expanding descending channel, as seen on the 15-minute chart.

A convincing move above the channel hurdle, currently at 105.57, would confirm the breakout and signal a resumption of the rally from the Aug. 5 low of 105.32. On the higher side, key resistance is seen at 105.68 – the peak of the descending channel.

On the downside, support is seen at 105.46 (channel low), which, if breached, would expose the Aug. 5 low of 105.32. At press time, the pair is trading at 105.56.

A breakout looks likely with the daily chart flashing early signs of a bullish reversal. The pair carved out a big bullish engulfing candle on July 31, terminating the downtrend from the March 24 high of 111.71.

15-min chart

Trend: Bullish

Technical levels

USD/JPY

Overview
Today last price	105.56
Today Daily Change	-0.04
Today Daily Change %	-0.04
Today daily open	105.6

Trends
Daily SMA20	106.37
Daily SMA50	107.1
Daily SMA100	107.51
Daily SMA200	108.21

Levels
Previous Daily High	105.87
Previous Daily Low	105.32
Previous Weekly High	106.13
Previous Weekly Low	104.19
Previous Monthly High	108.16
Previous Monthly Low	104.19
Daily Fibonacci 38.2%	105.53
Daily Fibonacci 61.8%	105.66
Daily Pivot Point S1	105.32
Daily Pivot Point S2	105.05
Daily Pivot Point S3	104.77
Daily Pivot Point R1	105.88
Daily Pivot Point R2	106.15
Daily Pivot Point R3	106.43

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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